Busted: Bankers and The Global Economy

January 30, 2008

PayPal Banking Standards by Phone for Africa

Filed under: banking, money — Tags: , , , , , — digitaleconomy @ 10:03 am

Most banks in Africa only have banks in urban areas of cities. For example, 90 per cent of Kenyans do not have an account in a regular bank. Across Africa, only 20 per cent of families have formal bank accounts, according to a World Bank survey. Enter the new world of banking via cell phone. Customers deposit money with a registered agent or phone vendor. The agent then credits the phone account of the customer. Users can send between 100 Kenyan shillings ($1.5) and 35,000 shillings ($530) with a text message to another recipient: even someone using a different mobile network. The recipient then can obtain the cash from an agent by entering a secret code and showing personal identification. Banking is no longer just for the wealthy in Africa. ~ E.M.

A Bank in every African Pocket?

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